Request to Allow RDO No. 53, Las Piñas-Muntinlupa to Issue the CAR Relative to the Sale of a House and Lot

December 11, 1998 BIR RULING NO. 175-98 000-00-175-98 Upholder Lending Corporation Room 203, Trade Center Building Padre Faura, Ermita Manila Attention: Ms . Cleofe A . Belarga Assistant General Manager Gentlemen : This refers to your letter dated June 22, 1998 requesting this office to allow the Revenue District Office No. 53, Las Pias-Muntinlupa to issue the Certificate Authorizing Registration (CAR) relative to the sale of a house and lot in your favor by the Spouses Ernesto and Jocelyn Baliwag so that title to the said property can be registered by the Register of Deeds in the name of Upholder Lending Corporation. dctai It is represented that a Deed of Absolute Sale was executed by and between the Spouses Ernesto and Jocelyn Baliwag and Upholder Lending Corporation dated June 15, 1998 involving a parcel of land together with the improvements thereon located at No. 30 E. Padua Street, BFRV, Las Pias, Metro Manila containing an area of 211 square meters and covered by TCT No. 61220 issued by the Registry of Deeds of Pasay City for and in consideration of P250,000.00; that your liaison officer, Mr. Cecilio V. Iniego, Jr. first tried to pay the capital gains tax and documentary stamp tax on the transaction to RDO No. 53, Las Pias-Muntinlupa but was, told to pay at RDO No. 33, Intramuros-Ermita-Malate, where your company is registered pursuant to Revenue Regulations No. 2-98; that on June 16, 1998, Upholder Lending Corporation paid the capital gains tax and documentary stamp tax with the Philippine Commercial Industrial Bank (PCIB), Ermita Branch in the amount of P89,853.60 and P22,470.00, respectively; and that after presenting the certificate of payment issued by PCIB, RDO No. 33 refused to issue the CAR but instead informed Mr. Iniego to secure the said CAR from RDO No. 53. In reply, please be informed that Revenue Memorandum Order No. 17-97 provides that on every sale, exchange, or transfer of real property, whether classified as ordinary or capital asset made by an individual, estate or trust or by a corporation, the TCL/CAR shall be issued by the RDO where the seller-transferror is registered or is required to be registered. The tax returns and all the taxes due on the transaction involving the transfer of real property ( i.e. , capital gains tax or creditable withholding tax, documentary stamp tax) should be filed and paid in the RDO where the seller-transferor is registered. In the instant case, although considering that the Capital Gains Tax Return under BIR Form No. 1706 and Documentary Stamp Tax Return under BIR Form No. 2000 were filed and paid in RDO 33, nevertheless the certificate authorizing registration has to be issued by RDO No. 53, where the seller-transferor is registered. In this connection, RDO NO. 33 where the capital gains tax return and documentary stamp tax return were filed and paid shall issue a letter to RDO No. 53, where the transferor is registered confirming that the capital gains tax and the corresponding documentary stamp tax on said transaction have been paid. At any rate it may be worthwhile to let you know that RMO No. 17-97 requiring that TCL/CAR should be issued where the seller-transferor is registered has now been amended by Sec. 3 of Revenue Regulations No. 8-98 dated August 25, 1998, viz: "SEC. 3. Time and Place of Payment of Capital Gains Tax . Within thirty (30) days following each sale or disposition, the Capital Gains Tax Return shall be filed by the seller and payment made to an Authorized Agent Bank (AAB) located within the Revenue District Office (RDO) having jurisdiction over the place where the property being transferred is located ." (Emphasis supplied) This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. prcd Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue